9 Jun 2015
GBP/USD: near-term risk remains on Carney’s Mansion house speech – Scotiabank
FXStreet (Barcelona) - According to Eric Theoret, CFA, CMT, Currency Strategist at Scotiabank, near-term risks for GBP/USD remain on Carney’s mansion house speech tomorrow, with the pound already facing downside pressure as expectations for a neutral BoE tone gather pace.
Key Quotes
“We note an ongoing erosion of GBP support in light of shifting policy expectations as market participants consider the contrast of a neutral BoE tone against the Fed’s modestly hawkish stance.”
“Near term BoE risk is high as we look to Gov. Carney’s Mansion house speech on Wednesday, with added focus on U.S. developments in light of Tuesday’s JOLTs release.”
“GBPUSD short-term technicals: bearish—signals remain biased to further downside and recent consolidation has centered around the 9 day MA (1.5309). We look to support near 1.5200 and expect resistance at the 21 day MA (1.5465).”
Key Quotes
“We note an ongoing erosion of GBP support in light of shifting policy expectations as market participants consider the contrast of a neutral BoE tone against the Fed’s modestly hawkish stance.”
“Near term BoE risk is high as we look to Gov. Carney’s Mansion house speech on Wednesday, with added focus on U.S. developments in light of Tuesday’s JOLTs release.”
“GBPUSD short-term technicals: bearish—signals remain biased to further downside and recent consolidation has centered around the 9 day MA (1.5309). We look to support near 1.5200 and expect resistance at the 21 day MA (1.5465).”